- dogwifhat has bounced from an 11-month low after recording a 12% gain in 24 hours.
- The recent gains caused over $2M in short liquidations, which was the highest in over two weeks.
The memecoin market traded lower on the 29th of January, with the total market capitalization of these tokens falling by around 2% to $92 billion.
However, Solana [SOL]-based meme coin dogwifhat [WIF] defied these bearish trends after registering a 12% gain in 24 hours to trade at $1.32 at press time.
WIF is rebounding after dropping to an 11-month low below $1. The dip has attracted buyers, as data from CoinMarketCap showed that trading volumes have surged by 210% to $1 billion at press time.
At the same time, short liquidations surged to $2M per Coinglass, marking the highest level in two weeks.
With short liquidations adding to the buying pressure, is WIF prime for a strong rebound, or will bears regain control?
dogwifhat price analysis
dogwifhat’s bounce from multi-month lows coincided with strong buying volumes, suggesting that a continuation of the bullish trend was likely.
However, for bulls to remain in control, WIF needs to flip resistance at the 0.786 Fibonacci level ($1.62).
The Relative Strength Indicator (RSI) indicator has made a sharp move north and formed a buy signal after crossing above the signal line.
Nevertheless, the RSI value remains in bearish territory at 40. For a bullish momentum to be confirmed, this indicator needs to rise above 50.
Source: TradingView
The on-balance volume (OBV) indicator with a negative value also showed a similar outlook. Buying pressure has yet to outpace the selling pressure, which could cause the rally to stall.
If WIF flips resistance at $1.62, it could trigger a bullish reversal. On the other hand, if the uptrend fails and WIF falls below $1 again, it could lead to a continuation of the bearish trend.
Key levels to watch
The forced closure of $2M short positions triggered a surge in buying pressure that saw WIF make a strong rebound above $1.
In fact, WIF’s liquidation heatmap with a 24-hour lookback period shows how the memecoin rebounded as these positions were being closed.
The next liquidation cluster that lies above the press time price is at $1.37. If WIF hits this price, and short sellers become forced buyers, it could strengthen the uptrend.
Source: Coinglass
At the same time, traders should watch out for a drop to $1.26 that could trigger long liquidations. A drop below $1 to $0.97 could also cause a steeper downtrend due to the large cluster of liquidations at this level.
Can WIF reclaim its top spot among Solana memecoins?
The Solana memecoin space has been abuzz with activity following the launch of Official Trump (TRUMP), which is currently the largest SOL-based meme with a $5.57 billion market capitalization.
Read dogwifhat’s [WIF] Price Prediction 2025–2026
WIF, with a $1.32 billion market cap, ranks as the third-largest after BONK [BONK]. If WIF can extend its recent gains and sustain the uptrend, it could flip BONK in the near term.
However, to reclaim its top spot, WIF needs to rally past $5.
